By integrating digital technologies and sustainable practices, organizations can enhance their environmental performance, contribute to environmental sustainability, and create innovative solutions to address environmental challenges. Thus, the main aim of this chapter is to shed light on the effects of digital transformation on environmental sustainability innovations. The data were collected from the 1st, 2nd, and 3rd Party Logistics (PL) companies registered with the International Transporters Association (UND) in Turkey. Data were collected from mid-level managers of these companies by administering a questionnaire. Relationships have been analyzed with the help of partial least squared-based structural equation modeling, correlations, and path analysis. The investigation results have found that logistics firms' high level of digital transformation is the strongest predictor of adopting sustainability innovations. This study provides a valuable contribution to the emerging fields of supply chain sustainability and the digitalization of environmental sustainability innovations.
TopIntroduction
The relationship between environmental sustainability innovations in corporate organizations and digital transformation has garnered increasing attention in recent years. Digital transformation has improved logistics operations responsiveness, efficiency, and transparency by integrating cutting-edge technologies and data-driven solutions (Gritsenko et al., 2022). Additionally, it has been determined that digital technologies in sustainable logistics are a critical facilitator for developing environmentally friendly and sustainable logistics systems that comply with sustainability imperatives (Sun et al., 2022). However, broader sustainability objectives and outcomes of the convergence of digital transformation and environmental sustainability innovations in the logistics sector are still uncertain (Feroz et al., 2021). It is this challenge that forms the motivation for our chapter.
Sustainability innovations have the potential to impact environmental sustainability significantly (Truong, 2022). They can support long-term environmental goals, advocate for beneficial improvements in business procedures, and promote the use of sustainable solutions. However, the effective application of sustainability innovations requires a supportive corporate climate, a collaborative work environment, and an emphasis on instrumental and symbolic attributes.
“Digital transformation” describes how digital technology is used and integrated into corporate settings and strategies to promote innovation, increase output, and change various organizational procedures, practices, and business models (Nadeem et al., 2018). Digital transformation entails injecting technology to improve organizational capabilities and create value in the virtual world and web, such as cloud computing, artificial intelligence, big data analytics, and the Internet of Things (IoT) (Wujarso, 2023). Thus, digital transformation has a big impact on business models, processes, interactions, and how organizations handle the environment. To keep up with this, organizations must engage their workforce and encourage a culture of creativity. It also poses obstacles, though, which must be removed for implementation to be successful.
The literature emphasizes the importance of digital transformation and environmental options in driving environmental sustainability and performance (Feroz et al., 2021; Kamal et al., 2017; Melnyk et al., 2002). Further research is needed to explore the relationship between digital transformation and environmental sustainability in the context of organizational level and other environmental options.
Environmental sustainability and digital transformation advances significantly impact the logistics industry and provide many benefits. A key factor driving change in the logistics sector is using digital technologies to increase and improve environmentally sustainable practices. Logistics or supply chain operations can be made more efficient and sustainable through the use of Industry 4.0 or newer technologies, cloud computing, artificial intelligence and digitization—a process known as digital transformation (Feroz et al., 2021; Sun et al., 2022; Zondervan et al., 2022). Moreover, entrepreneurship and adopting digital business models have been linked to achieving the United Nations Sustainable Development Goals, emphasizing the potential of digitalization to further sustainability objectives (Bican & Brem, 2020). Businesses in a variety of industries, including logistics, have realized the potential of digital technologies as a tool for improving social, economic, and environmental sustainability (Bednarčíková & Repiská, 2021). Moreover, the concept of Logistics 4.0, underpinned by digital transformation, has been identified as a critical enabler for establishing future-proof and sustainable logistics systems, aligning with sustainability imperatives (Lin & Ho, 2009).